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26/11/2008
Reasonable cost deductions 'need to be justified' |
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Landlords need to be able to defend any reasonable cost deductions in a potential tenant's deposit, an expert has warned.
Paul Farndon, property management consultant at learnletting, has told landlords that they cannot merely say to a tenant that their holding deposit is non-refundable.
Mr Farndon advised that the owners of the property can deduct reasonable cost from a prospective tenant's deposit if they are notified in advance but they must not "penalise the tenant".
Last month, mydeposits.co.uk reported that 38 per cent of deposit disputes came as a result of cleaning costs to return a dwelling to a habitable state.
Damage to the property accounted for 11 per cent of disputes, while four per cent centred on belated payment of bills or rent.
The website's tenancy scheme safeguarded 200,000 deposits worth a total of £177 million between April 2007 and March 2008 - of which 341 disputes arose. |
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